Editor's Correspondence from September 19, 2025
In a series of recent events, several significant issues have come to light, ranging from the importance of effective crop insurance to the impact of sugary drinks on health, and the potential for a US-India trade agreement.
In Punjab, farmers have suffered unprecedented heavy losses due to floods and rains, underscoring the importance of formulating robust crop insurance policies that are tailored to the topography of the region. The necessity of such insurance by each State is increasingly highlighted as a means to protect farmers from such devastating losses.
Meanwhile, India continues to battle its reputation as the diabetes capital of the world. With chronic sugar intake affecting every part of the body, the government's decision to impose a "sin tax" on sugary drinks is a step in the right direction. However, the effectiveness of this tax is at risk due to corporate 'shrinkflation', a practice where smaller packs of sugary drinks are sold at the same price, maintaining the same sugar content. Consumers may find themselves losing twice due to this loophole.
Sugary drinks like colas, iced teas, and energy drinks have been classified under 40% Goods and Services Tax (GST) in India. This taxation is aimed at discouraging the consumption of these beverages, but the focus now shifts to the State governments to ensure that adequate crop insurance policies are in place to protect farmers from the financial burden of such taxes.
On the international front, US trade officials are making efforts to achieve a bi-lateral trade agreement quickly with India. The US has expressed a top priority for reductions in tariffs on agricultural products (imports) by India. This potential agreement could have significant implications for India's agricultural sector, particularly for farmers in Punjab who have recently experienced heavy losses.
Sergio Gor, nominated by US President Donald Trump for the position of US Ambassador to India around September 2025, emphasized the close ties between the US and India during a hearing held in that month. However, Trump's combative stance may lead to unsavory situations within and outside the US, potentially impacting these relations.
It is important to note that there is no specific mention of any connection between the US trade agreement with India and the events mentioned in this article.
In a vibrant democracy, healthy criticism is essential. Unfortunately, Trump has threatened to cancel the licenses of TV stations that criticize him, a move that goes against the principles of a free press. This incident serves as a reminder of the importance of upholding the principles of democracy and freedom of speech.
Lastly, India's food watchdog FSSAI remains lenient compared to its European counterparts in regulating harmful preservatives. This leniency could have long-term health implications for the population, particularly in the context of India's struggle with diabetes.
In conclusion, these recent events highlight the importance of effective crop insurance, the need for stricter regulation of sugary drinks, the potential implications of a US-India trade agreement, and the importance of upholding democratic principles in the face of pressure.
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